The pension adjustment on July 1, 2025, means a noticeable increase in monthly benefits for around 21 million retirees in Germany. The statutory pension will rise by 3.74 percent – a value that exceeds the current inflation rate of about 2.3 percent. This adjustment is the result of good wage development in the past year and strengthens the purchasing power of the recipients.
Details on the Pension Increase
The pension will increase by 3.74 percent. For one so-called earnings point, this means: The current pension value rises from previously 39.32 euros to now 40.79 euros. A standard pension at an average income and 45 contribution years will increase by about 66.15 euros per month. Here are some examples for different gross pensions before deducting health and nursing insurance contributions as well as taxes:
- 500 € => 518.70 €
- 750 € => 778.05 €
- 1000 € => 1037.40 €
- 1250 € => 1296.75 €
- 1500 € => 1556.10 €
- 1750 € => 1815.45 €
Financial Impact on the Budget
The increased pension will be paid out automatically – no application is required. It directly leads to an increase in disposable income:
- Purchasing Power: Since the increase is above inflation, most recipients will have more real money left.
- Consider Deductions: Contributions to health and nursing insurance, as well as taxes if applicable, will still be deducted. Special feature: The basic contribution to nursing insurance was increased at the beginning of the year; the difference will be reimbursed in July as a one-time deduction.
Significance for Private Investors and Savers
- Demand Effects: Higher incomes among seniors may lead to increased demand for consumer goods.
- Pension Products: The increased confidence in the statutory pension could temporarily reduce the pressure to additionally save privately.
- Financial Planning: For household budgets, this means more room for spending or additional savings.
The significant increase in the statutory pension temporarily strengthens the financial situation of many households in retirement. It offers opportunities for companies focused on older target groups and also influences the decisions of private savers regarding their own retirement planning.